Another aspect of the Kozak reforms is the restructuring of local government.
In September 2002 Putin sent the proposals of the Kozak commission to the State
Council for further amendment. In early January 2003 the Presidential
Administration submitted a draft law to the Duma, which will debate it on
February 21, and to the regions.

The law would create a two-level system of local government: rural and urban
settlements at the lower level and "municipal districts" comprising
several such settlements at the higher level. The legal service of the Irkutsk
province legislature has criticized the proposal: it would deprive the lower
level of autonomy and increase administrative costs, which would have to be
borne by local budgets.